NEET BIOLOGY

Detailed explanation-1: -The improvement in living standards is the direct result of econom-ic growth. Our per capita consumption of goods and services has increased because our per capita production (or output) of goods and services has increased. When we produce more, we can consume more.

Detailed explanation-2: -Economic growth brings quantitative changes in the economy. Economic growth reflects the growth of national or per capita income. Economic development implies changes in income, savings and investment along with progressive changes in socio-economic structure of country (institutional and technological changes).

Detailed explanation-3: -The generally accepted measure of the standard of living is GDP per capita. 2 This is a nation’s gross domestic product divided by its population. The GDP is the total output of goods and services produced in a year by everyone within the country’s borders.

Detailed explanation-4: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.